Research on Globalization:Women as Consumers and Globalization

		In terms of the price effect, conventional trade theory suggests that trade liberalization will lead to lower prices in domestic markets since goods produced more cheaply in other countries are imported at lower prices than goods produced locally benefiting consumers. Women will benefit from these price effects both as consumers and as household members primarily responsible for the family budget. Women can play a very important role in the rationalization of consumption as they are responsible for household expenditure and budget. Consideration of the price and consumption effects of trade might yield new criteria for targeted safety net or social support programs.
As women are the decision makers in consumption decisions the consumption effect of trade reform on poor people’s livelihoods are mediated by gender relations. If the household’ incomes earning possibilities are constrained while they are making their purchases in globally-linked markets, with limited substitution possibilities, women will have to face the challenge of increasing living costs and limited access to cash. This, in turn, may have detrimental effects on overall household welfare. This requires an efficient role for the state to help women rationalize domestic consumption and raise domestic savings. (Fontana, M. 1998)
More Resources